Guide to Real Estate Investments in Alicante

Alicante is one of the most attractive cities for real estate investment in Spain. Its Mediterranean climate, quality of life, and strong rental demand make it an ideal destination for those looking to buy a property for investment purposes.

Is it advisable to buy to rent in Alicante?

Buying a property to rent out can be an excellent investment strategy, but it is essential to evaluate certain factors:

✅ Advantages:

• High profitability due to the growth of the real estate market.
• Constant demand for rentals, both long-term and holiday.
• Revaluation of the property over time.
• Possibility of obtaining tax benefits and deductions.

❌ Disadvantages:

• It requires a significant upfront investment.
• Management needs (maintenance, tenants, taxes).
• Regulations on tourist rentals in certain areas.

But it is worth investing in Alicante because it has a strong demand for rentals thanks to tourism and the presence of university students, which makes it a very profitable option for real estate investment. In addition, Alicante is an excellent city for real estate investment due to its high demand for rentals, The appreciation of real estate and tax advantages make buying a property here a profitable option in both the short and long term.

Here is the graph that represents the evolution of real estate investments in Alicante from 2020 to 2024.

In 2020, there was a slight drop in real estate investments (-4%) due to the COVID-19 pandemic, which temporarily slowed down the market.However, the demand for second homes by foreign investors and residents remained constant.

After the health crisis, investments grew again.

Interest in Alicante increased thanks to teleworking and the search for more livable spaces outside the big cities.

Tourism began to recover, encouraging the purchase of properties for short-term rentals.

Investments in short-term rentals (Airbnb, Booking) have generated returns of more than 10% per year, making Alicante one of the most profitable cities for real estate investment in Spain.

If you are thinking of investing, it is advisable to analyse the area well, calculate the expected return and consider the type of rental that best suits your profile. We can help you make the best decision!